Change Management Consulting News 
Advice for Transforming your OrganizationNovember 2010
In This Issue
Happy Thanksgiving
Lean Six Sigma - Part 1
News Briefs
Inspirational Quotes

Stanley Cherkasky
Stanley Cherkasky
Managing Partner 
 
 
Change Management Consulting, Inc. (CMC) is a global management consulting and training company dedicated to helping organizations of all sizes improve performance, achieve goals and advance leadership capability.
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Welcome to our monthly newsletter. It delivers valuable news, best practices, and resources to enhance your organization's competitive position. Since our focus is on achieving business results, we truly become a business partner to our clients. This is accomplished through a combination of assessments, customized training, and management consulting.
 
Our diversified products and services are complementary, and based on best practices and innovative design. CMC's core competencies include: change management, leadership development, strategic planning, continual improvement initiatives, compliance management (ISO quality and environmental management systems) and Lean Six Sigma.
Happy Thanksgiving from Change Management Consulting!  
 
We at Change Management Consulting, Inc. wish to take this opportunity to wish you and your family a joyful Thanksgiving. 
 
Even in these troubling economic times, each and every Happy Thanksgiving!one of us has something to be grateful for.  Maybe
it is your family, the love you have in your life.  Maybe it is your health.  Perhaps you find your work exciting and challenging. Whatever your reasons, we urge you to take a moment over the holidays to reflect on the good things in your life and to remember those less fortunate.

Lean Six Sigma in Plain English-Part 1

 

The stark reality is that Six Sigma has been around for about twenty-five years, and many business leaders still don't really understand this incredibly powerful body of knowledge. This four-part article is intended to demystify Lean Six Sigma (LSS), and to answer the most frequently asked questions of our firm. Simply put, large or small, manufacturing, service or public sector, all can benefit financially from LSS.


Some of the questions that will be answered are: What is Lean Six Sigma? What does the term "Sigma" refer to? What is the history of Six Sigma? Where are most companies operating today in terms of sigma performance? Is "operational excellence" the primary focus for Lean Six Sigma? What are the roles of Champions, Master Black Belts, Black Belts, and Green Belts? What steps are there in a typical Lean Six Sigma deployment approach?


What is Lean Six Sigma?


Lean Six Sigma combines two extraordinary improvement methodologies: producing work faster (using Lean principles), and producing work better (using Six Sigma). Lean Six Sigma is a proven business strategy for driving out waste and inefficiency and increasing customer loyalty - by orders of magnitude. In less than two decades Lean Six Sigma has become the gold standard for creating world-class organizations.


Six Sigma is the pinnacle of quality performance - the virtual elimination of errors, mistakes and defects from every product, process, and/or transaction in an enterprise. Six Sigma is a management process and business metric. It is an overall strategy to improve growth and productivity, and a measurement of quality performance.


As a strategy, Six Sigma is a way to achieve performance breakthroughs - top and bottom-line results. As a business metric, Sigma is a statistical unit of measure that reflects process capability. A six sigma company operates at only 3.4 defects or errors per million opportunities - or 99.9997% error-free. Six Sigma is the gold standard because it is widely understood in the business world as a quest for "process perfection."


What does the term "Sigma" refer to?


Taken from the Greek alphabet, the term "sigma" is used in statistics as a measure of variation. The sigma scale correlates to such characteristics as defects per unit, parts per million defective, and the probability of failure/error.


You can easily determine the sigma level for a process if you know the process yield or the "defects per million opportunities" (DPMO). In manufacturing, for example, sigma could be used to measure the number of sub-standard products, or late shipments. In a service organization, it could quantify call center performance (wait times), or errors in billing.  

Six Sigma Conversion Table

An organization's sigma level indicates the performance of a process against some set specification. So, the sigma level (one, two, three, and so on) represents how well a process is performing. In the past, customers were happy with a 99.5 percent quality level. That is no longer acceptable today.  Winning and keeping customers requires near perfect performance.

 

CMC offers a free consultation for those interested in learning more about Lean Six Sigma and how it can benefit your organization.

News Briefs

Competing on Product and Service Quality

The results of a recent online Quality Progress poll that asked the question: "Which company was hurt most by quality issues this year?" are:  Toyota (54.8%); British Petroleum (37.5%); Johnson & Johnson (4.3%); and Apple (3.2%). What is your quality performance? Do your customers agree?
Inspirational Quotes

Business

"It is easier to do a job right than to explain why you didn't." - Martin van Buren
 
Change

"Challenges are what make life interesting; overcoming them is what makes life meaningful." - Joshua J. Marine 
 
 
Leadership

"The quality of a person's life is in direct proportion to their commitment to excellence regardless of their chosen endeavor." - Vince Lombardi
 
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